The proposed acquisition is focused on increasing the company’s product offering in the passenger car and commercial vehicle segments as well into industrial sectors such as construction and mining, the company said.

“The transaction value is $14 million which will be funded through internal accruals and debt,” it added.

WFT is a leading supplier of complex, steel and high-alloy steel, engine and chassis components to a diverse group of customers across automotive and industrial sectors. The US firm is expected to record revenues of $28 million this year with a balanced revenue mix across the automotive and industrial sectors.

The proposed transaction will be consummated upon completion of certain conditions and regulatory approvals. Bharat Forge shares on Friday ended at Rs907.40 apiece on the BSE, up 0.91 from previous close.